Correlation Between Banco Ita and IGO
Can any of the company-specific risk be diversified away by investing in both Banco Ita and IGO at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Banco Ita and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Ita Chile and IGO Limited, you can compare the effects of market volatilities on Banco Ita and IGO and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Banco Ita with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Ita and IGO.
Diversification Opportunities for Banco Ita and IGO
Very good diversification
The 3 months correlation between Banco and IGO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Banco Ita Chile and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Banco Ita is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Banco Ita Chile are associated (or correlated) with IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of Banco Ita i.e., Banco Ita and IGO go up and down completely randomly.
Pair Corralation between Banco Ita and IGO
If you would invest 377.00 in Banco Ita Chile on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Banco Ita Chile or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Banco Ita Chile vs. IGO Limited
Performance |
| Timeline |
| Banco Ita Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IGO Limited |
Banco Ita and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Ita and IGO
The main advantage of trading using opposite Banco Ita and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Ita position performs unexpectedly, IGO can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IGO will offset losses from the drop in IGO's long position.The idea behind Banco Ita Chile and IGO Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IGO vs. Norra Metals Corp | IGO vs. ZincX Resources Corp | IGO vs. Nuinsco Resources Limited | IGO vs. South Star Battery |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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